Philadelphia, Pennsylvania Commercial Natural Gas

Philadelphia Commercial Natural Gas: America's Birthplace of Savings

Philadelphia—America's sixth-largest city and home to world-renowned healthcare and educational institutions—offers significant natural gas savings opportunities for businesses. From historic Center City to the Navy Yard, from University City's academic campuses to the region's healthcare systems, Philadelphia's diverse commercial sector can benefit from Pennsylvania's deregulated energy market.

Understanding how to navigate natural gas procurement helps Philadelphia businesses reduce operating costs effectively.

How Natural Gas Works in Philadelphia

Philadelphia Gas Works (PGW) Service

Philadelphia Gas Works (PGW), a city-owned utility, provides natural gas delivery throughout Philadelphia:

• Distribution network: Owns and maintains local pipelines
• Meter services: Records all usage
• Emergency response: 24/7 service (215-235-1212)
• Billing: Consolidated delivery and supply

PGW is the nation's largest municipally-owned gas utility.

Pennsylvania Choice Program

The Pennsylvania Public Utility Commission (PUC) regulates supplier choice:

• Licensed natural gas suppliers compete
• Consumer protection regulations
• Seamless switching between suppliers
• PGW continues reliable delivery

Service Structure

Component	Provider	Competitive?
Gas delivery	PGW	No—regulated
Gas supply	PGW or supplier	Yes
Meter reading	PGW	No
Billing	PGW	Consolidated

Cost Reduction Strategies for Philadelphia

1. Compare Natural Gas Suppliers

Philadelphia businesses have extensive supplier options:

Evaluation Factor	What to Consider
Per-therm rate	Base commodity cost
Rate type	Fixed, variable, or index
Contract term	12-36 months typical
Monthly fees	Additional charges
Exit provisions	Early termination costs

Visit PA Power Switch for licensed supplier listings.

2. Leverage Volume

Philadelphia organizations can negotiate based on consumption:

• Under 15,000 therms: Standard commercial rates
• 15,000-50,000 therms: Custom quotes available
• 50,000+ therms: Direct negotiations
• Institutional: Campus and portfolio pricing

Healthcare systems and universities should request custom pricing.

3. Strategic Timing

Natural gas prices fluctuate seasonally. Monitor EIA data:

Favorable periods:

• Late spring and summer
• After mild winters
• High storage levels

Higher cost periods:

• Peak heating season
• Extreme cold events
• Supply constraints

Philadelphia's winter heating makes timing valuable.

4. Regional Aggregation

Greater Philadelphia businesses benefit from aggregation:

• Multiple Philadelphia facilities
• Delaware Valley operations
• Regional coordination
• Multi-state portfolios (PA/NJ/DE)

Combined volume improves negotiating position.

Industries We Serve in Philadelphia

Healthcare

World-renowned healthcare systems:

• Penn Medicine - University health system
• Jefferson Health - Major regional system
• Temple Health - Academic medical center
• Children's Hospital of Philadelphia

Explore: Healthcare Natural Gas Solutions

Higher Education

Major universities:

• University of Pennsylvania
• Temple University
• Drexel University
• Thomas Jefferson University

See: Educational Facility Natural Gas Solutions

Commercial Real Estate

Center City and beyond:

• Office towers
• Mixed-use developments
• Historic buildings
• Multi-tenant facilities

Related: Multi-Tenant Natural Gas Solutions

Hospitality

Tourism and hospitality:

• Hotels
• Convention center
• Historic attractions
• Hospitality operations

Explore: Hotel Natural Gas Solutions

Restaurants

Philadelphia's legendary dining scene:

• Fine dining establishments
• Multi-location restaurant groups
• Commercial kitchens
• Food markets (Reading Terminal)

See: Restaurant Natural Gas Solutions

Manufacturing

Industrial operations:

• Manufacturing facilities
• Navy Yard development
• Industrial processing
• Food processing

Related: Manufacturing Natural Gas Solutions

Philadelphia Market Specifics

Healthcare Hub

Major medical center:

• Multiple world-class health systems
• Medical research
• Healthcare real estate
• Largest employment sector

"Eds and Meds" Economy

Education and healthcare dominance:

• University City concentration
• Academic medical centers
• Research institutions
• Knowledge economy

Historic Urban Core

Center City dynamics:

• Historic buildings
• Mixed building ages
• Retrofit challenges
• Urban density

Delaware Valley Region

Regional market:

• Philadelphia metropolitan area
• Suburban commercial
• Multi-state operations
• Regional commerce

Compare Pennsylvania Cities

Coordinate across Pennsylvania locations:

• Pittsburgh - Peoples Gas territory
• Allentown - UGI Utilities territory
• Erie - National Fuel Gas territory
• Reading - UGI Utilities territory
• Harrisburg - UGI Utilities territory
• Pennsylvania statewide

Understanding Your Philadelphia Gas Bill

Bill Components

Your PGW bill includes:

1. Delivery Charges (PGW)

• Customer charge (fixed monthly)
• Distribution charge (per Mcf)
• Infrastructure charges
• City taxes and fees

2. Supply Charges

• Gas commodity cost (per Mcf/therm)
• From PGW or supplier
• Shopping here creates savings

Rate Schedules

PGW commercial rate schedules:

Schedule	Description
GC	General Commercial
LFD	Large Firm Distribution
IT	Interruptible Transportation

Delivery charges apply regardless of supplier.

Contract Strategies for Philadelphia

Fixed Rate Contracts

Essential for:

• Healthcare facilities
• Educational institutions
• Commercial real estate
• Winter price protection

Standard terms:

• 12, 24, or 36 months
• Locked per-therm rate
• Early termination fees

Variable/Index Rates

Consider when:

• Flexible budget capacity
• Market monitoring capability
• Shorter-term needs
• Summer operations

Philadelphia considerations:

• Healthcare and education need budgeting certainty
• Winter heating significant
• Large buildings benefit from predictability

Philadelphia Recommendations

Given Philadelphia's "eds and meds" profile:

• Fixed pricing strongly recommended
• Portfolio pricing for multi-facility systems
• At least partial fixed for winter protection
• Monitor market for opportunities

Learn more: Understanding Natural Gas Deregulation

Energy Efficiency in Philadelphia

PGW Programs

PGW offers commercial efficiency programs:

• Equipment rebates
• Custom project incentives
• Energy assessments
• Commercial energy audits

Visit PGW Business for current offerings.

Pennsylvania Programs

State energy programs through PA DEP:

• Commercial incentives
• Industrial programs
• Technical support
• Financing options

Philadelphia Energy Authority

Local initiatives:

• Philadelphia Energy Campaign
• Building performance requirements
• Commercial efficiency programs
• Sustainability initiatives

Get Your Free Philadelphia Analysis

Natural Gas Advisors helps Philadelphia businesses optimize natural gas costs:

1. Bill Analysis: Review your current PGW bills
2. Supplier Comparison: Compare licensed suppliers
3. Contract Review: Evaluate terms and opportunities
4. Negotiation Support: Secure competitive rates
5. Ongoing Management: Monitor renewals and market

No cost to businesses—suppliers compensate us directly.

Whether you operate a healthcare system, university campus, commercial building, or any Philadelphia business, Pennsylvania's Choice program offers real savings opportunities.

Philadelphia is where American independence was born. Let us help you declare independence from high energy costs. Contact Natural Gas Advisors today for your complimentary Delaware Valley energy analysis.